Committee voted to approve the additional funding and passed the following motions:
THAT Council receive Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”;
AND WHEREAS Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works” does not meet Council expectations of rigorous project management and fiscal responsibility, resulting in a failure of demonstration of:
POL.COR.24.05 Accountability and Transparency of Town Actions to the following Public Policies and Town Values,
- Accountability” means the Town of The Blue Mountains and its elected Council’s commitment, undertaking and duty to answer to those it serves for its actions, inactions and general state of affairs.
- Transparency” means the Corporation and its Council’s commitment and undertaking to be open to those it serves in the execution of its offices, duties and activities and its commitment to public participation and input in its decisions and activities
AND Town Values which where the governing principles that guide an organization on a daily basis, the Town’s values have been developed through collaboration with Council and Staff to work towards the common goal of striving to be the best local government for the residents it serves.
- Integrity: Being honest, consistent and fair in all we do;
AND Policy, POL.COR.25.02 Page 7 of 22 Employee Code of Conduct
- 2. Integrity a) Always act with integrity and in a manner that will bear the closest public scrutiny
WHEREAS Council recognizes that the Town will have to move forward with the project or bear the consequences of the loss of an additional $25m in public funding;
WHEREAS Council approves an increase of $19,000,000 to the project budget, as referenced in staff report OPS.25.049;
AND THAT as a result of the above approval, Council directs staff to provide a “what/ when/where” investigative report, no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting, outlining consequences of staff actions as well as recommendations for corrective measures that strongly emphasize accountability and prevention so no event of this nature “ever happens again”;
AND THAT the above requested report also brings forward the impact of the additional $19m requirement on the revised 2026 capital plan;
AND THAT Council direct staff to bring forward, in an Excel format, the total amount in each reserve, identifying the amounts which have been allocated by project and the amounts which are available for other uses, including sources of funding, reserve strategy and long term financial projections for all capital projects while outlining how the town will responsibly absorb this overrun with a full understanding that this plan will not impact the future tax levy;
AND THAT Council directs staff to report on any variance to the Bay Street Reconstruction project budget and all related works at the next available Committee of the Whole meeting until completion. The staff report is to include: an explanation, recommendations and options for savings from other capital projects to fund the overage before additions to the original budget will be considered;
AND THAT Council directs staff to report out on the Bay Street Reconstruction financials and any related works throughout the project delivery time period with the first report coming no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting and quarterly from this date onwards until the completion of the project. Although the projects were combined updates are to be provided at both the whole and individual tendered levels;
AND THAT Council directs staff to undertake a review of the Capital Project department’s reporting processes and procedures back to the Committee of the Whole meeting on March 17, 2026, at the latest;
AND that this report also provides recommendations for revised procedural controls that will ensure timely, accountable communications with Council and the public on all financial pressures associated with major capital projects;
AND THAT Council directs staff to bring the identified eligible development charges for the Bay Street East Reconstruction project, and any related works, as they are received against the $19m annually until the amount is made whole.
THAT, further to Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”, Council directs staff to bring forward an updated Budget Policy that establishes appropriate variance reporting thresholds, including both percentage and minimum dollar-value triggers, to ensure material variances are reported to Council in a timely and meaningful way;
AND that the Budget Policy be brought no later than the Committee of the Whole meeting of March 16, 2026;
AND THAT Council directs staff to provide a further staff report to the March 16, 2026 Committee of the Whole Meeting on how certainty in future projects will be managed if they are based on a 30% engineering estimate, and how they are included in a grant application and capital budgets, given the overruns recently experienced in the Bay Street project;
AND THAT Council direct staff to address tender approval thresholds and delegated authority through the upcoming Purchasing Policy update, including enhanced Finance sign-off and reporting requirements for major procurements;
AND that the Purchasing Policy be brought no later than the Committee of the Whole meeting of March 16, 2026;
AND THAT Council direct staff not to combine projects until a policy outlining best practices for project coupling, stacking and or bundling has been approved.
AND THAT Council direct staff to bring forward the reserve policies to the Committee of the Whole meeting no later than the meeting on March 16, 2026.
This motion was adopted by Council at their meeting on Tuesday, December 16. Presentation of the Staff Report begins at the 2:20:10 point of the meeting recording.